In the era of industry 4.0 manufacturing companies undergo digital transformation (DT) by actively adopting digital technologies. These companies require an understanding of the factors that affect their DT process based on their maturity level. We studied managers’ perceptions of DT in a digitally novice company to understand what factors affect DT in customized manufacturing. Seven interviews were conducted with managers responsible for DT. The collected qualitative data was analysed using Gioia method. The findings suggest that highly customized products, organizational structure and culture, human resource, and data management are among factors affecting DT of a digital novice company.